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Automotive Market Collapse
The automotive market is collapsing. Consumers are having a very difficult time making the minimum monthly car payment. Repossession numbers of cars are skyrocketing. Inventory of new cars is stockpiling to historic levels. One in five consumers is getting denied car loans. Nobody is buying pickup trucks, SUVs, and higher-priced vehicles. Car interest rates are 7% to over 10%, depending on your credit score. And Kamala Harris is saying that Joe Biden fixed our economy? Did Bidenomics work, and will she continue? What a liar. The economy sucks. There is an economic collapse coming our way. A huge recession will come in the coming months: housing, car, and stock market crash.
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1 Reply
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Thank you for your insights into the current market conditions. Especially in the automobile industry.
- The Joe Biden and Kamala Harris Administration’s priority and goal is to make the economy look better than what it is.
- Inflation numbers are higher than the government reports.
- Unemployment numbers have been misreported and shorted by 818,000 people.
- The state of the economy is of the utmost importance if the Democrats want to win and clinch the Presidency and majority control over the U.S. Senate and Congress.
- We care about how the economy is performing.
- As much as we should not make any hearsay political statements or forecast the economy, we can state facts and try to provide some context to the issues highlighted above:
Auto industry pain points:
- It has indeed been documented that a certain population has experienced difficulties in servicing motor vehicle loans.
- Due to the sluggish economy, we have a higher incidence of motor vehicle repossession in some regions.
- One in five people needs help getting approved for auto financing.
- An alarming rate of auto repossessions is being reported month after month.
Interest rates:
- Car loan rates, in particular, have been on a worrying rise.
- This does not help consumers fund vehicles.
- Average interest rates on car loans are between 7% and 12% for consumers with great credit and high credit scores.
- Consumers with fair to good credit pay interest rates between 12% and 25%.
- The average new monthly car payment is between $1,000 to $1,800.
- Many people need help to afford their car payments due to the high cost of living, inflation, and home prices.
Loan approvals: Some borrowers also find it difficult to obtain vehicle loans because of negative reporting.
Vehicle preferences:
More customers preferred vehicles that were deemed more efficient within different parameters. These include, but are not limited to, fuel prices and the state of the economy.
Inventory levels: Inventory status also differs by manufacturer and geography.
Economic outlook:
- There can be all types of predictions.
- When it comes to the state of the economy, predicting things is more challenging than it seems.
- It is important to point out that a certain economic indicator is only sometimes simple and unambiguous.
- Different sectors of the economy are likely to be in recession while others are booming.
- The range of experience among individuals can be widely varied.
Reviewing economic literature and reports from different sources can help one inquire into the latest context and nuanced economic parameters. This may provide a more complete picture of the present economic environment and what the future may hold.
If the developments affecting the economy worry you, especially regarding how such factors will shape your finances, consulting a financial advisor may assist you. The advisor will take into account your particular factors and advise accordingly.